With the swirling and continued rumors of the PS3 Slim, why would they lose $140 on each console? Slim = basically every component is reduced in size, thus lowering production costs drastically. The cost of a PS3 to Sony won't be $440, while selling it at retail for $299.

While people always mention they're selling the PS3s at a loss,

It's still better to sell off their old stock, not selling them is an even bigger loss.

Plus, a PS3 in a customers hands is also a lot of potential exclusive purchases.

They want to release the PS3 slim, but once they release that, the chances of anyone buying an older machine will drop, unless there's a good price incentive.

Destroyer_of_Knights got it right.

They are trying to bully Sony into bankrupcy making a price cut!

They need to hurry up and do this

i mtrying to be patient

I think there needs to be a consideration of the financial position of both Sony's Game division and Sony on the whole ...

The decline of sales of hardware and software of both the PSP and PS2 have really cut into Sony's game division's bottom line because these systems are not sold at (much of) a loss and the licencing fees alone off of the software where boosting the profit margin of the division. Its difficult (if not impossible) for Sony to recover these lost revenues from the PS3 (in particular with a price cut) because the hardware does have a noticeable loss, there is a massive ammount of money spent on marketing (and more would be needed), the total volume of software isn't as great, and the per unit profit off of software is limited due to higher development costs. When you add to this the added costs of launching the PSP go it becomes clear that it would be a challenge for the game division to cut the price of the PS3.

On top of all of that, Sony on the whole is bleeding money and needs most of its divisions to turn a profit if they can or to reduce their losses if they can't turn a profit. It would be a difficult for SCE to convince the board of directors of Sony that it was a good idea to take a $1 Billion loss on the PS3 at this point in time.

I'm not saying it can't or won't happen, just I don't think most people realize how difficult it would be for SCE to justify a price cut.

You are all missing the hugest pont of an august price drop. A madden bump. Back to school is technically the shopping season. But Sony isn't expecting you to pick up a PS3 with your trapper keeper, they want you to pick one up with your copy of Madden 2010.
/thread.

I know 1 thing for sure: by the time a PS3 price cut comes, everyone will know about it from leaks.

If it did happen it would certainly boost PS3 sales really well - Mid-August or Late-August ios the perfect time to do it

Go!

With the PS1 generation the analogue stick would have been added by the company which used to hold the monopoly, so therefore it couldn't be considered an addition caused by competition. These addons take years so I doubt they added it last minute when they were sure the PS1 would lose.I do grant however that the new style relationships with third parties was a significant thing even if it was a business revolution in the console industry.

The Wii is also archaic as well. You could say that fewer third parties would have gone out of business if they Wii was packing a modernised GPU and was about 1/4 - 1/3rd as powerful as the Xbox 360 so for games running on 480p ports would be possible. The fact that the ecosystem was changed as well would largely cause the downfall of many third parties because they could not easily port between the Wii and the Xbox 360/PS3.

Nintendos actions with the Wii architecture benefited them the most. The reason why they got so many games out so quickly was that all their games were sequels to gamecube games essentially if you look at the software side of things. It didn't help the third parties because the TEV is nothing like the modern pixel/vertex shader GPUs. Thats the reason why I declared a while back that they develop the hardware for their own needs first. Sony is pretty bad on this as well actually, so the different model is Microsoft who make the architecture for third parties.

Look how much vista sucks. That's due to monopoly on a market guys. Competition = great. Fortunately linux and mac have started to give microsoft a run for their money so they need to get in gear...